Mark K. from Grafton, MA asks: I am in the process of finalizing a trust, and need to know how to compare different trust companies. Can you give me some criteria or questions to ask?

Matt's Response:

Hi Mark, great question. Choosing a trustee is arguably the hardest and most important part of setting up a trust.

As you may already know, there are several benefits of having a corporate trustee involved with your trust. Here are a few;

•  Experience. Managing trusts should be their core business. Trust companies are familiar with all kinds of trusts, tax and estate planning strategies, and the legal responsibilities of a trustee.
• Oversight. Trust companies are regulated by both state and federal agencies. Also, most courts consider them to be experts and expect a higher degree of performance than they would  from an individual trustee.
• Reliability. When you use a professional trust company, you don't need to worry about them passing away, becoming incapacitated, or being distracted by personal concerns as an individual might.
• Objectivity. A trust company will follow your instructions objectively, and without the emotion that might affect an individual trustee,

When it comes to evaluating a trust company, it's important to recognize that they aren't all the same. They have different personalities, fees, and services. Here are some questions to ask to help you compare.

• How many years have they been in business?
• How many trust officers do they have? 
• How many trusts do they manage?
• What is the minimum and average size of the trusts they manage?
• How much experience does their staff have?
• Will you have a dedicated trust officer?
• What jurisdiction(s) do they operate in?
• What are the pros/cons of that jurisdiction for your trust?
• What fees do they charge? 
• What do you get for that fee?

After you get to know the trust company, ask Yourself:

• How you feel about the people there?
• Are they genuine?
• Did they listen and understand your concerns? 
• Can you understand what they are saying or do they talk only in technical terms?  
• Overall, how comfortable do you feel that they will be there for you and your family when you need them?